Oldenburg Selling Mining, Military Divisions
By pdamon25 August 2016
Reflecting, at least in part another casualty of the extended downturn in the mining markets, the Oldenburg Group, Milwaukee, Wis., a manufacturer of mining equipment, commercial lighting and military products, is selling two of its three divisions, according to a report in the Milwaukee Journal-Sentinel.
The company said it is selling its underground mining equipment and defense businesses to J.F. Lehman & Co., a New York private equity firm. Oldenburg said it will retain its commercial lighting equipment division. Financial terms of the sale, which are expected to be finalized in September, were not announced.
Lehman has said it will not close Oldenburg’s plants, which include facilities in Wisconsin and Michigan, according to company founder and CEO Wayne Oldenburg. “One of my first conditions that I said to Lehman was that I wouldn’t consider any deal unless there was an agreement to hire everybody and not to close any facilities,” Oldenburg told the Milwaukee Journal-Sentinel.
Oldenburg has factories in Rhinelander, Wis. and Michigan’s Upper Peninsula. It also has a technology center in Kingsford, Mich. In 2006, the company sold its coal mining equipment business to Joy Global Corp. for $140 million, but kept its division that makes machines used in hard-rock underground mining.
Oldenburg said his company’s mining equipment division has remained profitable, despite the downturn. “We have a suite of products for underground mining, and we have expanded that into Mexico and the rest of Latin America. The expansions have made up for existing customers in the U.S. and Canada,” he said. The company’s military business also has been strong, Oldenburg said, largely from sales of equipment to the U.S. Navy and U.S. Coast Guard.
For More Information: http://www.oldenburggroup.com/